The Monetary Policy Committee of the Central Bank of Nigeria has decided to keep the nation’s Monetary Policy Rate unchanged at 27 per cent. The Governor of the CBN, Olayemi Cardoso, disclosed this resolution during a press briefing held after the conclusion of the Committee’s 303rd meeting in Abuja.
The MPR, which functions as the primary benchmark interest rate for the entire economy, will stay at its current level as the MPC reiterated its dedication to maintaining a restrictive monetary policy stance designed to achieve price stability.
The Committee likewise retained the Cash Reserve Ratio at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public sector deposits. The Liquidity Ratio continues to stand at 30 per cent, whereas the Standing Facilities Corridor has been revised to +50 / -450 basis points around the MPR.
In the view of the MPC, these measures underscore its priority of attaining low and stable inflation, pointing out that headline inflation has kept declining thanks to persistent monetary tightening, a relatively steadier exchange rate, and price stability in PMS.
The Committee recognised the notable advances made in the ongoing bank recapitalisation exercise, with 16 banks having already complied with the stipulated regulatory standards.
Cardoso further shared his observations on the global economic environment, stating that the medium-term recovery appears intact, although trade tensions between the United States and key trading partners may pose risks to growth. He added that global inflation is expected to remain above pre-pandemic levels in the near term.
The Governor once again emphasised the Central Bank of Nigeria’s resolve to pursue evidence-based monetary policy with the core objectives of safeguarding price stability and enhancing the robustness of Nigeria’s financial system.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli